GRANITE CONSTRUCTION INC (GVA) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GVA - US3873281071 - Common Stock
118.67 USD
+3.32 (+2.88%)
We assign a fundamental rating of 6 out of 10 to GVA. GVA was compared to 54 industry peers in the Construction & Engineering industry. GVA has only an average score on both its financial health and profitability. GVA is not overvalued while it is showing excellent growth. This is an interesting combination. With these ratings, GVA could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
GVA had positive earnings in the past year.
In the past year GVA had a positive cash flow from operations.
GVA had positive earnings in 4 of the past 5 years.
GVA had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.40%, GVA is in line with its industry, outperforming 55.56% of the companies in the same industry.
GVA's Return On Equity of 15.79% is fine compared to the rest of the industry. GVA outperforms 61.11% of its industry peers.
The Return On Invested Capital of GVA (6.20%) is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for GVA is significantly below the industry average of 16.29%.
The 3 year average ROIC (3.67%) for GVA is below the current ROIC(6.20%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROIC | 6.2% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
1.3 Margins
GVA's Profit Margin of 4.31% is in line compared to the rest of the industry. GVA outperforms 59.26% of its industry peers.
GVA's Profit Margin has improved in the last couple of years.
GVA has a Operating Margin (6.08%) which is in line with its industry peers.
The Gross Margin of GVA (16.39%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of GVA has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
2. Health
2.1 Basic Checks
GVA has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, GVA has less shares outstanding
The number of shares outstanding for GVA has been reduced compared to 5 years ago.
The debt/assets ratio for GVA is higher compared to a year ago.
2.2 Solvency
GVA has an Altman-Z score of 2.58. This is not the best score and indicates that GVA is in the grey zone with still only limited risk for bankruptcy at the moment.
GVA has a Altman-Z score (2.58) which is in line with its industry peers.
The Debt to FCF ratio of GVA is 3.86, which is a good value as it means it would take GVA, 3.86 years of fcf income to pay off all of its debts.
GVA has a better Debt to FCF ratio (3.86) than 66.67% of its industry peers.
GVA has a Debt/Equity ratio of 0.84. This is a neutral value indicating GVA is somewhat dependend on debt financing.
GVA's Debt to Equity ratio of 0.84 is in line compared to the rest of the industry. GVA outperforms 42.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Altman-Z | 2.58 |
ROIC/WACC0.62
WACC10.07%
2.3 Liquidity
GVA has a Current Ratio of 1.21. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.21, GVA is in line with its industry, outperforming 46.30% of the companies in the same industry.
GVA has a Quick Ratio of 1.12. This is a normal value and indicates that GVA is financially healthy and should not expect problems in meeting its short term obligations.
GVA has a Quick ratio of 1.12. This is in the lower half of the industry: GVA underperforms 62.96% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 61.71% over the past year.
The Earnings Per Share has been growing by 32.75% on average over the past years. This is a very strong growth
GVA shows a small growth in Revenue. In the last year, the Revenue has grown by 6.87%.
The Revenue has been growing slightly by 6.57% on average over the past years.
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
3.2 Future
GVA is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.48% yearly.
GVA is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.62% yearly.
EPS Next Y38.93%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue Next Year10.92%
Revenue Next 2Y10.76%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 20.22 indicates a rather expensive valuation of GVA.
83.33% of the companies in the same industry are more expensive than GVA, based on the Price/Earnings ratio.
GVA's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 26.51.
GVA is valuated rather expensively with a Price/Forward Earnings ratio of 18.95.
87.04% of the companies in the same industry are more expensive than GVA, based on the Price/Forward Earnings ratio.
GVA is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 23.13, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.22 | ||
| Fwd PE | 18.95 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GVA is valued a bit cheaper than the industry average as 77.78% of the companies are valued more expensively.
GVA's Price/Free Cash Flow ratio is rather cheap when compared to the industry. GVA is cheaper than 85.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.95 | ||
| EV/EBITDA | 13.36 |
4.3 Compensation for Growth
GVA's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as GVA's earnings are expected to grow with 22.48% in the coming years.
PEG (NY)0.52
PEG (5Y)0.62
EPS Next 2Y24.52%
EPS Next 3Y22.48%
5. Dividend
5.1 Amount
GVA has a yearly dividend return of 0.44%, which is pretty low.
Compared to an average industry Dividend Yield of 0.41, GVA pays a better dividend. On top of this GVA pays more dividend than 87.04% of the companies listed in the same industry.
With a Dividend Yield of 0.44, GVA pays less dividend than the S&P500 average, which is at 2.00.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
5.2 History
The dividend of GVA decreases each year by -0.19%.
GVA has paid a dividend for at least 10 years, which is a reliable track record.
GVA has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)-0.19%
Div Incr Years0
Div Non Decr Years33
5.3 Sustainability
GVA pays out 12.45% of its income as dividend. This is a sustainable payout ratio.
DP12.45%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
NYSE:GVA (1/2/2026, 3:25:16 PM)
118.67
+3.32 (+2.88%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryConstruction & Engineering
Earnings (Last)
Earnings (Next)
Inst Owners119.35%
Inst Owner Change3.25%
Ins Owners1.09%
Ins Owner Change-0.65%
Market Cap5.18B
Revenue(TTM)4.24B
Net Income(TTM)182.46M
Analysts80
Price Target132.8 (11.91%)
Short Float %12.14%
Short Ratio7.97
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.44% |
Yearly Dividend0.52
Dividend Growth(5Y)-0.19%
DP12.45%
Div Incr Years0
Div Non Decr Years33
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)9.76%
Min EPS beat(2)6.79%
Max EPS beat(2)12.74%
EPS beat(4)3
Avg EPS beat(4)29.36%
Min EPS beat(4)-4.36%
Max EPS beat(4)102.29%
EPS beat(8)4
Avg EPS beat(8)12.62%
EPS beat(12)7
Avg EPS beat(12)-128.57%
EPS beat(16)8
Avg EPS beat(16)-113.13%
Revenue beat(2)0
Avg Revenue beat(2)-3.91%
Min Revenue beat(2)-4.31%
Max Revenue beat(2)-3.52%
Revenue beat(4)1
Avg Revenue beat(4)-1.97%
Min Revenue beat(4)-4.31%
Max Revenue beat(4)1.87%
Revenue beat(8)3
Avg Revenue beat(8)0.82%
Revenue beat(12)5
Avg Revenue beat(12)-0.26%
Revenue beat(16)8
Avg Revenue beat(16)0.21%
PT rev (1m)-3.91%
PT rev (3m)0.67%
EPS NQ rev (1m)1.12%
EPS NQ rev (3m)-10.16%
EPS NY rev (1m)0.23%
EPS NY rev (3m)-0.45%
Revenue NQ rev (1m)0.87%
Revenue NQ rev (3m)0.87%
Revenue NY rev (1m)-0.62%
Revenue NY rev (3m)-1.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.22 | ||
| Fwd PE | 18.95 | ||
| P/S | 1.22 | ||
| P/FCF | 14.95 | ||
| P/OCF | 11.2 | ||
| P/B | 4.48 | ||
| P/tB | 8.88 | ||
| EV/EBITDA | 13.36 |
EPS(TTM)5.87
EY4.95%
EPS(NY)6.26
Fwd EY5.28%
FCF(TTM)7.94
FCFY6.69%
OCF(TTM)10.59
OCFY8.93%
SpS97.05
BVpS26.48
TBVpS13.36
PEG (NY)0.52
PEG (5Y)0.62
Graham Number59.14
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.4% | ||
| ROE | 15.79% | ||
| ROCE | 10.25% | ||
| ROIC | 6.2% | ||
| ROICexc | 8.61% | ||
| ROICexgc | 12.6% | ||
| OM | 6.08% | ||
| PM (TTM) | 4.31% | ||
| GM | 16.39% | ||
| FCFM | 8.18% |
ROA(3y)3.19%
ROA(5y)0.78%
ROE(3y)8.55%
ROE(5y)2.36%
ROIC(3y)3.67%
ROIC(5y)N/A
ROICexc(3y)5.78%
ROICexc(5y)N/A
ROICexgc(3y)7.39%
ROICexgc(5y)N/A
ROCE(3y)6.06%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3Y121.93%
PM growth 5YN/A
GM growth 3Y11.34%
GM growth 5Y17.02%
F-Score7
Asset Turnover1.02
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.84 | ||
| Debt/FCF | 3.86 | ||
| Debt/EBITDA | 2.39 | ||
| Cap/Depr | 78.54% | ||
| Cap/Sales | 2.74% | ||
| Interest Coverage | 9.61 | ||
| Cash Conversion | 114.13% | ||
| Profit Quality | 189.88% | ||
| Current Ratio | 1.21 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z | 2.58 |
F-Score7
WACC10.07%
ROIC/WACC0.62
Cap/Depr(3y)135.78%
Cap/Depr(5y)115.36%
Cap/Sales(3y)3.7%
Cap/Sales(5y)3.28%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)61.71%
EPS 3Y125.25%
EPS 5Y32.75%
EPS Q2Q%31.71%
EPS Next Y38.93%
EPS Next 2Y24.52%
EPS Next 3Y22.48%
EPS Next 5YN/A
Revenue 1Y (TTM)6.87%
Revenue growth 3Y4.6%
Revenue growth 5Y6.57%
Sales Q2Q%12.39%
Revenue Next Year10.92%
Revenue Next 2Y10.76%
Revenue Next 3Y9.62%
Revenue Next 5YN/A
EBIT growth 1Y80.62%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year113.54%
EBIT Next 3Y40.17%
EBIT Next 5YN/A
FCF growth 1Y1319.85%
FCF growth 3YN/A
FCF growth 5Y133.59%
OCF growth 1Y342.92%
OCF growth 3Y175.18%
OCF growth 5Y32.58%
GRANITE CONSTRUCTION INC / GVA FAQ
What is the fundamental rating for GVA stock?
ChartMill assigns a fundamental rating of 6 / 10 to GVA.
Can you provide the valuation status for GRANITE CONSTRUCTION INC?
ChartMill assigns a valuation rating of 6 / 10 to GRANITE CONSTRUCTION INC (GVA). This can be considered as Fairly Valued.
Can you provide the profitability details for GRANITE CONSTRUCTION INC?
GRANITE CONSTRUCTION INC (GVA) has a profitability rating of 5 / 10.
Can you provide the PE and PB ratios for GVA stock?
The Price/Earnings (PE) ratio for GRANITE CONSTRUCTION INC (GVA) is 20.22 and the Price/Book (PB) ratio is 4.48.
Is the dividend of GRANITE CONSTRUCTION INC sustainable?
The dividend rating of GRANITE CONSTRUCTION INC (GVA) is 5 / 10 and the dividend payout ratio is 12.45%.